KARACHI: Cotton crop failure for the third consecutive year and the resultant increase in lint prices will increase cost of doing business for the spinning sector, All Pakistan Textile Mills Association (Aptma) said on Tuesday.

In a statement, Aptma Senior Vice-Chairman Zahid Mazhar said the spinning sector has been incurring heavy losses by selling yarn below its cost due to poor demand from domestic consumers. Yarn production is substantially more than the local consumption therefore its exports should be encouraged, he added.

“Due to expected short cotton crop, spinners are forced to meet around 30 per cent of cotton consumption through imports. The imposition of 4pc customs duty and 5pc sales tax on import of cotton has further increased the cost of doing business which is already high as compared to the regional countries,” he said.

Published in Dawn, November 22nd, 2017